Over the last couple of years, those of us living and working on the east coast have seen a jump in minimum wage. Maryland’s minimum wage is now $15/hour, while our neighbors in New Jersey are paid $15.13 and our neighbors in D.C. are paid $17.00/hour.
But in Virginia, where the minimum wage is $12/hour, the Virginia governor thinks it should stay that way. On March 28, 2024, Virginia Governor Glenn Youngkin vetoed a bill that would have increased the minimum wage in Virginia to $13.50 in 2025 and eventually to $15.00 by 2026. The average cost of living in Virginia in 2022 was $52,057. An employee working 40 hours per week on a minimum wage salary in Virginia may only earn $24,960. Governor Youngkin blocked the bill stating he was concerned about the impact of the increase on small businesses, some of which have not yet recovered from the economic impact of the pandemic. Governor Youngkin further explained that he wanted the Old Dominion to remain competitive with other states like neighboring North Carolina and non-neighboring Texas, both of which pay the federally mandated minimum wage of only $7.25/hour.
Contrast that with California. On Monday, April 1, 2024, the minimum wage for fast food workers was raised to $20.00 per hour. This minimum wage raise applies specifically to national franchise and chain restaurants that share a common brand and can be characterized by their brand, e.g., McDonalds, Chick-Fil-A, Burger King, and the like. According to the Bureau of Economic Analysis, the average cost of living in California in 2022 was approximately $60,272. Under the new minimum wage, a full-time fast food worker working at least 40 hours per week on the new minimum wage has the potential to earn just about $40,000 before taxes.
As part of this new legislation, California established the “Fast Food Council” comprised of a group of representatives responsible for developing and implementing standards for wages, working hours and work conditions. The Fast Food Council will be responsible for determining reasonable annual increases for years to come beginning as early as January 1, 2025. This is a big move forward by California politicians to help residents keep up with the cost of living now as well as in the future. As a consumer, this could also mean price hikes for your Whoppers and fries purchased in the Golden State.
If you are a business owner concerned about whether you are paying your employees appropriately, reach out to one of the attorneys at RKW Law Group.
